1. WE do not find much merit in this appeal preferred by the second opposite party in O.P. No. 7/1996 questioning the order of the Medak District Forum at Sanga Reddy dated 28.6.1996 in that opposite party directing it to pay to the complainant a sum of Rs. 16,800, but for interest thereon @ 18% per annum from 26.6.1995, the date of death, till the date of payment. The complainant is the first respondent before us and the first opposite party before the District Forum is the second respondent before us.
2. THOUGH notice was served on the appellant it did not choose to appear before the District Forum and file its version/counter. On the basis of the material on record the District Forum allowed the claim of the complainant holding that the record produced proved that the complainants husband Balamallu died in an accident. He had taken welfare endowment certificate on 7.5.1993 for Rs. 16,800/ - face value from the second respondent before us i.e., Peerless General Finance and Investment Company Ltd., and thus became its Certificate Holder. In its counter filed before the District Forum the second respondent admitted having received intimation of death of Balamallu on 5.9.1995 and that the said fact was informed to the appellant immediately without any delay and that the appellant was under an obligation to pay the endowment amount to the complainant and that it was not liable to pay the same. The District Forum held that as the appellant did not respond and did not pay the endowment amount to the complainant there was deficiency in service on its part. It is not now open for the appellant to contend that it did not receive the claim from the second respondent. Therefore there is no ground made out for interfering with the order of the District Forum directing the appellant to pay the endowment amount with interest.
However we find that the interest of 18% awarded is on the high side and it should be reduced to 12% and that the interest should be paid not from the date of the death of the insured i.e., 26.6.1995, but after allowing reasonable time that would be normally taken by the Insurance Company to process the claim. In the counter filed on behalf of the second respondent before as i.e., first opposite party in the District Forum, it was stated that the complainant informed on 5.9.1995 about the death of the certificate holder and that the same was informed to the appellant. Under the circumstances the interest will have to be paid after allowing reasonable time for consideration of the claim -4 months in all from 5.9.1995, i.e., interest from 1.1.1996. The order of the District Forum under appeal is accordingly modified and the appellant is directed to pay to the complainant a sum of Rs. 16,800/ - with interest thereon @ 12% per annum from 1.1.1996 till the date of payment.
3. ON 22.1.1997 in FA. IA. No. 93/1997 this Commission granted interim stay of the execution of the operation of the order of the District Forum under appeal subject to the appellant depositing the sum of Rs. 16,800/ - and Rs. 500/ - towards costs and permitted the complainant/first respondent to withdraw the costs of Rs. 500/ - and a further sum of Rs. 8,400/ - our of the sum of Rs. 16,800/ - deposited without furnishing any security. In the circumstances the first respondent/complainant will beat liberty to withdraw the balance sum as well. The interest on Rs. 16,800/ - @ 12% per annum from 1.1.1996 to 22.1.1997 shall be paid by the appellant to the first respondent/ complainant within four weeks from today. The appeal is accordingly partly allowed as indicated above. No costs. Appeal partly allowed.
